Build-to-rent is an asset class that is well-established in many countries but still in its infancy in Australia. It’s one very fast-growing infant though—build-to-rent is forecast to overtake offices, student accommodation and warehousing to become the biggest new development asset class by the end of this decade.
The defining difference with a build-to-rent development is that it is a long-term investment and one where the biggest determinants of commercial success are operational efficiency and resident experience.
Successful operators are those that build a strong brand, attracting tenants to the lifestyle they offer.
Build-to-rents therefore tend to have a higher proportion of shared facilities [about 4sq m to 6sq m per resident, compared with 1sq m to 2sq m in a buy to sell] such as gym, pool, roof terraces, co-working spaces, theatres, meeting rooms and entertaining areas.
They usually offer a resident app to enhance the lifestyle experience—offering, for example, a digital key, contract management, facilities bookings, admitting guests and parcel collection.
Smart-access control is important in any development but in build-to-rent, it is the foundation for the entire technology ecosystem.
It is the platform on which efficiency and experience are built.
Smart access functionality helps to optimise property management systems (PMS) and resident apps.
For example when residents book a facility through their app, integration with access control ensures that they are granted access at the time (and only the time) they have booked.
When a tenancy agreement ends, the resident’s access can be automatically revoked to avoid security risks.
If a resident is notified through the app that they have a delivery, the access control system ensures that they can open the right locker.
Smart-access control can help developers to generate additional income from chargeable and/or externally managed facilities (such as a podcasting studio or a wellness studio) by integrating with booking and payment systems.
Smart-access control drives the operational efficiencies that help developers to maximise profitability—for example, remote lock and unlock means that operators don’t have to have staff on site and can manage multiple locations from anywhere in the world.
So how do developers maximise the benefits of smart-access control for yield, security and manageability?
Design in smart-access control—it’s essential to make access control part of the infrastructure. A manufacturer such as Salto will help you design an access-control solution that will serve as a technology foundation and ensure efficiency and resident experience.
Engage directly with the manufacturer—Salto can offer expert advice, corporate pricing, and a long-term relationship for a long-term asset. Salto, for example, can scale with you as you grow your portfolio.
Look for a strong integration team and APIs—access control is the enabler for all other technology, so your chosen provider must be able to integrate with a range of other systems. At Salto we have a dedicated team to assist.
Look for a unified access control system—a manufacturer that develops hardware and software in-house to work together for smooth operation, and one that can cover a complete range of access points—including base building, carpark, lifts, apartments, shared facilities and lockers. Some build-to-rent developments will incorporate hotels, or traditional build-to-sell, so look for a single system that can cover all use-cases and allow you to reduce complexity for both residents and management.
Partner with a supplier that has done this before—build-to-rent may be new to Australia but a supplier such as Salto has years of experience designing smart-access control for build-to-rent projects around the world, experience we can leverage for the success of your project.
Brandon Esplin [below] is Salto Systems Lead for Living Spaces (Oceania). Get in touch with Brandon to discuss maximising the performance of your build-to-rent assets.
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